Credit card cut-backs ‘handled badly’

The placing of new limits on the amount of credit card debt its customers can access was handled badly by Egg and its parent company Citigroup, it has been claimed.

According to Moneysupermarket.com, some of Egg’s customers have suggested that they have had their spending limits cut despite consistently paying off their balances at the end of each month.

Based on these indications, the price comparison firm has remarked that it would be disappointed by Citigroup’s actions if it becomes clear that they were motivated by a desire to lose “less profitable customers”.

“This move by Citigroup has been badly handled and now many cardholders who received the letter are talking of withdrawing their savings from Egg,” read a statement from Moneysupermarket.com.

“And with Egg accounts paying one per cent less than the market leading savings products, this should be of much concern to Citigroup.”

Earlier this week, debt solution provider ClearDebt claimed that creditor actions were to blame for the decline in insolvency rates in the UK last year.

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ClearDebt proposes and administers Individual Voluntary Arrangements (IVAs). We only provide advice on the basis that there is reasonable contemplation of an insolvency appointment, once it is apparent that an IVA is likely to be the most appropriate debt solution.